Foreclosure Filings Drop, as Activity on the Courthouse Steps Slows
Foreclosure filings decreased throughout our coverage area, continuing a trend we've seen over the course of several months. Activity on the courthouse steps was down from a month ago everywhere except in Washington where foreclosure sales rose significantly.3rd Party investors are much faster at reselling foreclosures than banks, though the difference varies by area. In Oregon, banks take an average of 156 days longer to sell inventory than 3rd parties while in Washington it took banks only 52 days longer. California banks on average took 104 days longer than 3rd party investors; whereas Arizona and Nevada banks both took an average of 70 days longer to move inventory than 3rd party investors."Our statistics clearly show that real estate investors continue to far outperform banks in dealing with distressed properties," says Sean O'Toole, CEO, and Founder of PropertyRadar, "yet politicians and bureaucrats are putting pressure on banks to become landlords, which will hurt local economic activity, as fewer properties are made available to local investors, also impacting their Realtors, contractors, and property managers; as well as to home buyers in need of affordable housing."
Notice of Trustee Sale filings was down 16.8 percent from the prior month in Arizona. July 2011 marked the fourth consecutive month of declining Notice of Trustee Sale filings, which now number less than half of what they were one year ago. Back to Bank foreclosure sales were also down for the fourth consecutive month, with a 6.4 percent drop in July from June, and a 39.0 percent drop from this time last year. Sold to 3rd Party sales were nearly flat, with a 1.8 percent decline from June. Time to Foreclose increased 6.0 percent in July, to 175 days. Time to Resell for Banks reached a new record at 166 days, up 4.4 percent from June; whereas Time to Resell for 3rd Parties declined to 96 days, with the average down 3.0% from June.
Foreclosure activity slowed again in July, except for a slight increase in Sold to 3rd Party auction sales on the courthouse steps. Notice of Default filings fell by 11.7 percent from June, and 30.6 percent from a year ago. Notice of Trustee Sale filings was down 5.4 percent from June, and have dropped 25.3 percent from July 2010. Cancellations decreased for the third consecutive month, with a 5.3 percent drop compared to June, and were down 32.0 percent year-over-year. Foreclosures going Back to Bank (REO) declined 4.0 percent from June, down for the second month in a row. Foreclosures Sold to 3rd Parties nudged up 1.2 percent from June, and are at the same level as this time last year. Time to Foreclose decreased slightly from June, down less than one percent to 313 days; although year-over-year remained up 19.5 percent. 3rd Party investors continue to resell inventory faster than banks, with the average at 131 days compared to the average Time to Resell for Banks at 235 days.
Nevada's overall foreclosure activity was down across the board. Notice of Default filings dropped 8.1 percent from June and was down 43.4 percent from July 2010. Notice of Trustee Sale filings fell 21.0 percent from June, and 34.5 percent year-over-year. Sales slowed on the courthouse steps for the third straight month, with Back to Bank foreclosures down by 23.9 percent, and Sold to 3rd Party foreclosures down by 12.3 percent from June. Although properties Sold to 3rd Party investors were down from June, on a year-over-year basis Sold to 3rd Party properties were up 38.4 percent. Cancellations declined for the third straight month, dropping 7.6 percent in July to the lowest level in 14 months. Time to Foreclose gained almost 1.0 percent in July with the average being 322 days, although the annual increase remains significantly higher at 32.0 percent. Banks slightly improved their Time to Resell in July compared to June, with the average dropping to 7.7 percent at 168 days. Time to Resell for 3rd Party investors was flat month-over-month at 98 days.
Oregon experienced another drop in Notice of Default filings in July, which came in below 1,000 filings for the first time since February 2008. Cancellations increased 49.7 percent month-over-month but remained down 9.2 percent from July 2010. Due in part to increased Cancellations, foreclosure sales were far below the rate seen in June. Properties sold Back to Bank were down 34.7 percent, and properties Sold to 3rd Party investors fell 17.8 percent from June 2011. The Time to Foreclose average dropped 15.5 percent in July, to 158 days; and was down 2.5 percent from July 2010. Banks take on average three times longer to resell inventory than 3rd Parties; with Bank July averages at 232 days to resell inventory and 3rd Party averages at a speedy 76 days.
In July, Washington saw a 16.8 percent drop in Notice of Trustee Sale filings from June, the fourth consecutive month of declines. Foreclosures going Back to Bank (REO) jumped 50.9 percent from June 2011, and foreclosures Sold to 3rd Party investors up 43.6 percent compared to June. Time to Foreclose declined slightly in July, down 2.8 percent from the prior month, at 103 days; from July 2010 Time to Foreclose was down 1.9 percent.